Paycheck Deductions
Bill: It’s about time! I’ve been waiting for my first Paycheck and now it’s finally here. I’m ready to party this weekend! Whoa!
Carol: What’s the matter?
Bill: What happened to all my money? The amount of this check is a lot less than I expected it to be.
Carol: Yeah, my first paycheck was an Eye-opener for me, too. Look at the Pay stub and you’ll see all of the Deductions. After federal Income taxes, state income taxes, and FICA, you’re not left with a lot of money.
Bill: You’re right, but what’s FICA?
Carol: Those are taxes for Social Security and Medicare. Did you sign up for a retirement plan? If you did, those Retirement contributions are deducted, too.
Bill: Thank God, I didn’t. But you know what? That still doesn’t Account for all of the deductions.
Carol: Let me take a look. Oh, it looks like your Wages are being Garnished.
Bill: They’re garnishing my wages? What for?
Carol: Uh, do you have to pay Child support or something like that?
Bill: Oh, yeah, I guess I do. I’d forgotten about that. I guess I’d better change my weekend plans.
Carol: I guess so.
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